China YCT International Group, Inc. Announces Financial Results for Fourth Quarter and Fiscal Year 2009

SHANDONG, CHINA, Jun 30 (MARKET WIRE) --
China YCT International Group, Inc., (OTCBB: CYIG) ("China YCT" or "the
Company"), a leading company engaged in the business of developing,
manufacturing and marketing gingko-based products through its wholly
owned subsidiary, Shandong Spring Pharmaceutical Co. Ltd, today announced
its audited financial results for the fourth quarter and full fiscal year
2009 ended March 31, 2009.

Fourth Quarter Fiscal Year 2009 Results

For the fourth quarter of fiscal year 2009, net sales totaled $3.84
million, a decrease of 35.4% compared to $5.95 million recorded in the
fourth quarter of fiscal year 2008.

Gross profit totaled $2.10 million, a decrease of 36.9% compared to $3.33
million in the fourth quarter of fiscal year 2008.

Net income for the fourth quarter was $1.02 million, or diluted income per
share of $0.03, compared to net income of $1.6 million, or diluted income
per share of $0.05 in the fourth quarter of fiscal year 2008.

"During the fourth quarter of fiscal year 2009, we felt the effects of the
global economic slowdown," stated Mr. Yan Tinghe, the Company's Chairman.
"In addition, with an earlier than normal start to the Chinese New Year
this year, there was an extended period of minimized business activity for
our dealers."

Fiscal Year 2009 Results

For the fiscal year 2009, net sales totaled $25.8 million, an increase of
55.6%, compared to $16.5 million in fiscal year 2008.

Gross profit totaled $14.4 million in fiscal year 2009, an increase of
55.8%, compared to $9.24 million in fiscal year 2008.

Selling, general and administrative expenses were equal to 16.1% of our
net sales as compared to 21.6% in the year ended March 31, 2008. This
difference is due to the fact that during the fiscal year ended March 31,
2008, our selling, general and administrative expenses included a one time
charge of $683,987 related to our going public expenses.

Excluding this one time expense, our selling, general and administrative
expenses as a percent of net sales for the fiscal year ended March 31,
2008 would have been 18.3%. We have been able to lower our selling,
general and administrative expenses as a percentage of net sales year on
year as a result of our management's ability to lower costs while
maximizing the efficiencies of our business.

Net income totaled $7.4 million, or diluted EPS of $0.25, compared to $3.8
million in fiscal year 2008, or diluted EPS of $0.13.

As of March 31, 2009, the Company's total cash and cash equivalents were
$10.0 million compared to $1.6 million at March 31, 2008. Net working
capital was $11.0 million as of March 31, 2009, compared to $5.1 million
at March 31, 2008.

Total shareholders' equity increased to $16.7 million as of March 31, 2009
from $9.0 million at March 31, 2008.

The total shares outstanding on a fully diluted basis as of March 31, 2009
were 29.3 million.

"In spite of the global weakening of consumer spending, we were able to
achieve an increase in net sales in fiscal year 2009," added Mr. Yan
Tinghe. "However, I believe in the short term, demand for our current
product line will remain relatively unchanged. With that being said, given
our strong cash position, we are currently aggressively pursuing
opportunities to expand the current product line so we can offer new
products to our loyal base of dealers and end user customers."

About China YCT International Group, Inc.

Established in 2005, China YCT International Group, Inc., through its
operating subsidiary, Shandong Spring Pharmaceutical Co. Ltd. ("Shandong
Spring Pharmaceutical"), a corporation organized under the laws of the
People's Republic of China, is a high-tech enterprise, which applies
modern biological technology and integrates research & development,
production and sales of ginkgo healthcare products, ginkgo cosmetics,
daily-use chemical products, ginkgo glycoside products and biological
medicines. All of Shandong YCT's businesses are currently in China.

Safe Harbor Statement

The statements contained herein that are not historical facts are
"forward-looking statements" within the meaning of Section 21E of the
Securities and Exchange Act of 1934, as amended, and the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
may be identified by, among other things, the use of forward-looking
terminology such as "believes," "expects," "may," "will," "should," or
"anticipates" or the negative thereof or other variations thereon or
comparable terminology, or by discussions of strategy that involve risks
and uncertainties. In particular, our statements regarding the potential
growth of the markets are examples of such forward-looking statements.
The forward-looking statements include risks and uncertainties, including
but not limited to, general economic conditions and regulatory
developments, not within our control. The factors discussed herein and
expressed from time to time in our filings with the Securities and
Exchange Commission could cause actual results and developments to be
materially different from those expressed or implied by such statements.
The forward-looking statements are made only as of the date of this
filing, and we undertake no obligation to publicly update such
forward-looking statements to reflect subsequent events or
circumstances.

CHINA YCT INTERNATIONAL GROUP, INC.
CONSOLIDATED BALANCE SHEETS

ASSETS
March 31,
2009 2008
------------ ------------
Current assets:
Cash and cash equivalents $ 10,048,380 $ 1,614,336
Inventory 8,346 737,153
Advance to suppliers - 834,284
Other receivable - related party 2,075,549 2,022,742
------------ ------------
Total Current Assets 12,132,275 5,208,515

Property and equipment, net of accumulated
depreciation of $133,670 and $68,282,
respectively 4,349,493 3,083,031

Land use right, net of accumulated amortization 1,411,274 1,404,803
------------ ------------

Total Assets $ 17,893,042 $ 9,696,349
============ ============

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable $ 456,568 $ 59,688
Unearned Revenue - 33,742
Taxes payable 485,438 563,135
Accrued expenses and other payables 189,890 32,994
------------ ------------
Total Current Liabilities 1,131,896 689,559
------------ ------------

Stockholders' Equity
Preferred stock series A, $500 par value, 45
shares authorized and outstanding as of
March 31, 2009 and 2008 respectively 22,500 22,500
Preferred stock series B convertible, $0.001
par value, 5,000,000 shares authorized,
-0- shares issued and outstanding - -
Common stock, $0.001 par value, 100,000,000
shares authorized; 29,380,073 shares issued
and outstanding as of March 31, 2009 and
2008, respectively 29,380 29,380
Additional paid-in capital 4,063,039 4,063,039
Accumulated other comprehensive income 1,130,576 857,763
Retained earnings 11,515,651 4,034,108
------------ ------------
Total Stockholders' Equity 16,761,146 9,006,790
------------ ------------

Total Liabilities and Stockholders' Equity $ 17,893,042 $ 9,696,349
============ ============

CHINA YCT INTERNATIONAL GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED MARCH 31,

2009 2008
------------ ------------

Revenues $ 25,817,447 $ 16,586,741

Cost of Goods Sold 11,323,587 7,322,143
------------ ------------

Gross Profit 14,493,860 9,264,598

Operating Expenses
Research and development expenses 181,531 141,241
Selling, general and administrative 4,167,322 3,586,140
------------ ------------

Income Before Other Expenses 10,145,007 5,537,217

Other Expenses (83,799) (116,255)
------------ ------------

Income Before Income Taxes 10,061,209 5,420,962

Provision for Income Taxes 2,579,666 1,534,620
------------ ------------

Net Income $ 7,481,543 $ 3,886,342

Other Comprehensive Income:
Foreign currency translation adjustment 272,813 696,468
------------ ------------

Comprehensive Income $ 7,754,356 $ 4,582,810
============ ============

Basic and diluted income per common share
Basic and Diluted $ 0.25 $ 0.13
============ ============

Weighted average number of common shares
outstanding
Basic and Diluted 29,380,073 29,300,825
============ ============

CHINA YCT INTERNATIONAL GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED MARCH 31,

2009 2008
-------------- --------------
Cash Flows From Operating Activities:
Net income $ 7,481,543 $ 3,886,342
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation and amortization 180,332 72,115

Changes in operating assets and
liabilities:
Inventory 728,807 (737,153)
Advance to suppliers 834,284 (834,284)
Other receivable - related party (52,806) (1,504,116)
Accounts payable 396,880 (19,740)
Unearned revenue (33,742) 33,742
Taxes payable (77,697) 563,135
Accrued expenses and other payables 156,894 (104,035)
-------------- --------------

Cash provided by operating
activities 9,614,495 1,356,006
-------------- --------------

Cash Flows From Investing Activities:
Addition to plant and equipment (1,330,350) (418,745)
Purchase of land use right - (308,298)
-------------- --------------

Cash used in investing activities (1,330,350) (727,043)
-------------- --------------

Cash Flows From Financing Activities
Cash provided by financing
activities - -
-------------- --------------

Effect of exchange rate changes on cash and
cash equivalents 149,899 305,602
-------------- --------------

Increase in cash and cash equivalents 8,434,044 934,566

Cash and Cash Equivalents - Beginning of
years 1,614,336 679,770
-------------- --------------

Cash and Cash Equivalents - Ending of years $ 10,048,380 $ 1,614,336
============== ==============

Supplemental disclosures of cash flow
information:

Interest paid $ - $ -
============== ==============
Income Taxes paid $ 2,608,665 $ 1,196,189
============== ==============

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